The U.S. Federal Trade Commission (FTC) filed a lawsuit against Nvidia’s $40 billion acquisition of Arm (Arm) on Thursday (2nd) on antitrust grounds, making this largest semiconductor M&A case face the worst so far. Major resistance.
The FTC alleges that the transaction will give Huida unfair control and prevent its opponents from obtaining the computing technology and design needed to develop computing chips. If approved, the merged company will hinder advanced technologies such as data centers and car assisted driving systems. improvement.
The FTC decided to ban this merger with 4 votes to 0 votes, symbolizing that Lina Khan is about to launch an active antitrust investigation since taking office as FTC chairman.
Huida Bianmou is the largest M&A case in the semiconductor industry. It was announced in September 2020 and has been concerned by the competent authorities of many countries, and investigations have been launched in the UK and the European Union. Amou, headquartered in Cambridge, UK, is part of Japan’s SoftBank Group and is the world’s leading silicon intellectual property (IP) industry. Huida is the largest chip supplier in the United States by market value.
Huida originally expected the transaction to be completed in 2022. The company responded that it will continue to work hard to show that this transaction is beneficial to the entire industry and can promote competition.
The news of the blockade of mergers and acquisitions came out late, but Huida’s stock price was not affected much. On Thursday, it still rose by 2.2% to US$321.26 per share, and it rose by 0.99% in the subsequent trading hours.
The FTC’s administrative judge will try in August 2022. The FTC can file a lawsuit through internal procedures or in the Federal Court. According to administrative procedures, the administrative judge will make a preliminary ruling based on the trial, and can appeal to the FTC committee to vote, but the resolutions made may eventually face an appeal in the Federal Court.
